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Why the Export of White Onion is Constantly Declining?

Despite the fact that 120 units in Mahuva are among the top exporters of dehydrated onion products, the Russia-Ukraine conflict, which has been ongoing since February, has hampered exports.

Kritika Madhukar
Even farmers have been impacted by the drop in exports
Even farmers have been impacted by the drop in exports

White onions aren't extensively utilized in India, despite the fact that the country thrives on curries, but they're a hit in other countries. White onions farmed in and around the seaside town of Mahuva in Gujarat's Bhavnagar district are used to make dehydrated onion flakes, granules, and onion powder.

According to industry estimates, roughly 18,000 metric tonnes of dehydrated onion-based goods are exported to Russia and Ukraine each year, accounting for 30% of overall exports.

"Exports to Russia and Ukraine have ceased since buyers' payments are uncertain." Payment cycles had also been prolonged, which harmed exporters, according to Manoj Ram, head of the All India Vegetables Dehydration Association.

"Despite a record crop this year, Mahuva's dehydrated onion product manufacturers are unable to capitalize on the opportunity due to a drop in demand from the two countries," another exporter stated.

Gujarat produces 75,000 tonnes of white onions, accounting for 80% of India's total white onion exports.

The districts of Bhavnagar and Amreli are major growers of the white onion crop. Farmers in Jasdan, Surendranagar, and Keshod grew white onions last year, contributing to crop production and increasing cultivation area by 200 percent," according to a source.

Even farmers have been impacted by the drop in exports, as demand from onion growers has decreased. According to sources, onion traders have a 5,000-tonne carry forward stock. 

According to the Mahuva Agriculture Produce Market Committee (APMC), over 75,000 50kg bags are dumped at the market yard every day. 

"On a daily basis, some 60,000 bags costing between Rs 100 and Rs 145 for 20 kg are sold. Due to this, high revenue, demand, and the price have been decreased from Rs 160 to Rs 130," said Ghanshyam Patel.

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